Student loan repayment, pay more than monthly due?
I have a $10,000 private student loan that’s expected to grow to $17,500 or so if I follow their plan, and I’d like to pay it off early and pay less. Is that how it works? Or are they going to make me pay off all $17,500 no matter what?
I really don’t want to pay $7,500 in interest, and I should have no problem coming up with $13,000 within the next two years or so.
thoughts? suggestions?
Thank you.
btw it’s Sallie Mae if that matters, not consolidated.
Read the fine print to see if there is an early payoff fee (but it would certainly be smaller than $7500), otherwise it is always good financially to pay off a loan early to avoid the extra interest payments.
Due to government regulations you must be told how much a loan will cost if you take the full time allotted to pay the debt, that doesn’t mean that is how much you owe, it is only how much you would owe if you took the full time-frame to payoff. Make larger payments than you must and get it paid early. You’ll be happier with it gone.
